Hinge Health Sets IPO Price at $32, Hitting the High End of Expectations—What It Means for Investors

Hinge Health has made waves recently by pricing its IPO at $32 per share. This marks a significant moment for the digital health startup, which focuses on remote physical therapy. They sold 8.52 million shares in this offering, bringing in about $273 million. While they were once valued at $6.2 billion in late 2021, their current valuation stands around $2.6 billion.

Founded in 2014 by Daniel Perez and Gabriel Mecklenburg, Hinge Health aims to support patients dealing with musculoskeletal injuries or chronic pain. Their software allows for remote rehabilitation, a feature that resonates with many, especially post-pandemic. The company reported a 50% increase in revenue for Q1, reaching $123.8 million, with a notable turnaround from a loss to a net income of $17.1 million.

Though the digital health sector has faced challenges in recent years, Hinge’s IPO is drawing attention as it comes amid a slow market for tech offerings. However, there’s a flicker of revival: other companies like eToro and CoreWeave have seen positive beginnings in the market, suggesting a gradual comeback.

Recent trends indicate that investors are cautiously optimistic about digital health. A survey by McKinsey shows that telehealth usage has stabilized, with around 38% of patients expressing interest in continuing virtual treatments. This insight highlights a shift in consumer behavior, emphasizing the demand for accessible healthcare options.

As Hinge navigates this new chapter, both investors and users are keen to see how it will adapt in a rapidly changing health landscape.



Source link

Health care industry,Internet,Technology,Breaking News: Technology,eToro Group Ltd,eToro Group Ltd,business news